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Story published at magicvalley.com on Thursday, February 28, 2008
Last modified on Thursday, February 28, 2008 12:22 AM MST
Bill to improve transportation funding introduced in House
Move caught senators off-guard, could spark political fight
BOISE - Senior House Republicans held an emergency meeting Wednesday to introduce legislation aimed at improving transportation funding, including ways to raise revenue. The move was a surprise to members of the Senate, coming one day after Gov. C.L. "Butch" Otter unveiled a handful of his own proposals.

The three pieces of legislation would place limits on the GARVEE bonded "Connecting Idaho" projects and subject them to legislative approval; shift $22 million in sales tax revenue from tires, batteries and car accessories to highway funding; and spend $550,000 for a performance audit of how the Idaho Transportation Department hires consultants.

A fourth proposal to raise registration fees by $30 for vehicles under 8,000 gross pounds and to raise more than $50 million was pulled back after concerns were raised about its wording and fiscal impact. A revised version with a $40 increase, plus a fee increase for trucks, is expected by Monday, said House Majority Caucus Chair Ken Roberts, R-Donnelly.

On Tuesday, Otter aides unveiled a funding package at a joint meeting of Senate and House transportation committees that would bring in an additional $202 million annually by 2011 to maintain Idaho's roads and bridges, including raising registration fees for personal vehicles to a flat annual rate of $150. Current fees are between $24 and $48, depending on the car's model year.

The ITD estimates an annual $200 million highway funding shortfall in the immediate future. Otter aides also are working on plans that include taxing rental cars, raising fees on trucks and shifting funding for the Idaho State Police.

The legislation introduced at the House Ways and Means Committee - consisting of majority and minority leaderships - came at 11:30 a.m. after a meeting at the end of the daily floor session. The meeting was not posted in the Capitol Annex, and senators later said they were unaware of the proposals.

"We're just trying to get all the issues out at once and talk about it," said Majority Leader Mike Moyle, R-Star.

House members said the bills - two of which are co-sponsored by House Transportation Chairwoman JoAn Wood, R-Rigby - are not a reaction or counter effort to Otter's ideas.

Rep. Leon Smith, R-Twin Falls, a former ITD Board Chairman, is a leading sponsor of the audit and the GARVEE changes. He said the proposals - a collective effort from a handful of lawmakers who met almost daily for a weeks - were introduced at the request of House leadership, and only represented ideas agreed upon.

"The rush was by leadership," he said. "They wanted to get those on the floor right away."

Under the GARVEE idea, the debt would be capped, the original 13 projects from 2005 would be retained and ITD would choose projects and funding, but need legislative approval. The audit would be performed by an independent company and report to the ITD Board, Legislature and the Joint Legislative Oversight Committee.

Wednesday's emergency meeting and resulting proposals could mark the start of political battle in state government. The 2007 Legislature finished a week late because of disagreements over transportation funding between the two chambers.

Senate Transportation Committee Chairman John McGee, R-Caldwell, who wasn't aware of the proposals until reporters showed him them Wednesday afternoon, said they were reaction and a counter effort to Otter's.

"If they were able to introduce them in an emergency meeting this morning, they could've been introduced yesterday," he said. "It's too bad we can't all work together and solve Idaho's transportation issues."

An hour later, McGee said he spoke with Otter and the governor wasn't pleased. Otter spokesman Jon Hanian declined comment for this story.

Asked about the ideas, Joint Finance-Appropriations Co-chairwoman Rep. Maxine Bell, R-Jerome, said the proposal to shift sales tax sounded the least palatable, but it wasn't too late to fund an audit, and she preferred lower registration fees to Otter's.

"The governor's (rate) is way out of line," she said, noting that "$30 seems like a realistic amount and in line with states around us."

Jared S. Hopkins may be reached at 420-8371 or jhopkins@magicvalley.com. The Associated Press contributed to this story.





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